Exelixis is undergoing a new round of restructuring, which includes closing its Pennsylvania site and laying off 130 employees, as the oncology company consolidates operations at its Alameda, California, headquarters.
A company spokesperson confirmed the changes, explaining that Exelixis had expanded its workforce significantly during and after the pandemic to meet business needs at the time. “As our business has continued to evolve, we have made the difficult decision to reorganize the company’s structure to focus largely on our operations in Alameda, California,” the spokesperson said.
The Pennsylvania site, located in King of Prussia, will cease operations entirely. While some employees will lose their positions outright, Exelixis indicated that many of the affected roles may be reopened in Alameda. The spokesperson emphasized that concentrating operations at the California headquarters “reflects our continued belief that working together as a single, cohesive team puts us in the best position to maximize the opportunities for cabozantinib, zanzalintinib and our early pipeline on behalf of the patients we serve.”
The layoffs extend beyond Pennsylvania. A WARN notice filed in California shows that 71 employees at Alameda are also being let go, effective October 27. In addition, 33 remote workers who report to California-based managers are losing their jobs. The reductions include positions at multiple levels, from four vice presidents to clinical trial managers and scientists, according to reporting from SFGate.
The restructuring comes just months after Exelixis announced that its experimental drug zanzalintinib, in combination with Roche’s Tecentriq, had outperformed Bayer’s Stivarga in a phase 3 trial for colorectal cancer. Analysts at William Blair described the trial results as ensuring a “meaningful commercial opportunity for the budding franchise,” and the company’s shares rose 12% to approximately $45 following the announcement.
Zanzalintinib, a tyrosine kinase inhibitor, is viewed internally by Exelixis as a potential successor to its flagship cabozantinib, marketed under the brands Cometriq and Cabometyx. The drug is being studied across several cancers, including non-clear cell renal cell carcinoma and neuroendocrine tumors, with early data from ongoing studies expected in 2026.
Cabozantinib, also a tyrosine kinase inhibitor, has been a cornerstone of Exelixis’ business since its first approval in 2012. The medicine, sold as Cometriq for thyroid cancer and as Cabometyx for renal cell carcinoma, has since gained approvals in hepatocellular carcinoma, neuroendocrine tumors, and additional thyroid cancers. In 2024, Cabometyx generated $1.81 billion of Exelixis’ $2.17 billion in total revenue, making it the company’s strongest commercial asset.
This is the second major restructuring for Exelixis in 2024. In January, the company eliminated 175 jobs to concentrate resources on label expansions for Cabometyx and development of zanzalintinib. The current changes are part of what Exelixis describes as an effort to streamline its structure and consolidate its research, development, and commercial activities at a single hub in California.
